The 2012 Energy Efficiency Directive established a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. Under the Directive, all EU countries are required to use energy more efficiently at all stages of the energy chain from its production to its final consumption.

Article 8 of the EED requires businesses of more than 250 employees – or turning over more than 50 million euros – to conduct audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures. Organisations must notify the relevant authorities in their countries by a set deadline that they have complied with their EED obligations. The deadline for the first compliance period was December 5th 2015.

What Eurbanlab can do for you? Eurbanlab works together with Longevity Partners, a multi-disciplinary energy and sustainability consultancy, to support businesses in their compliance efforts. What we can do for you?

If you were unable to make the first deadline, an official request for delay can be send on your behalf.

What happens if my organisation does not comply? European countries were required to transpose the Directive’s provisions into their national laws by 5 June 2014. The Energy Savings Opportunity Scheme (ESOS) is the UK response to the Energy Efficiency Directive. Other schemes exist in other European countries, but the compliance deadline is fixed for all European countries. The penalties for non-compliance vary per Member State, but for the UK non-compliance means:

Organisations who fail to comply will have their names published on the scheme Administrator’s website;

A fixed penalty of up to £50,000 should be paid to the scheme Administrator; and/or

An additional £500 per day for each day after the compliance date up to £40,000; and

Publication of non-compliance details.

“Clarity on compliance with Article 8 varies significantly between EU Member States. If your organisation operates in other EU Member States, and if the means of compliance with Article 8 in these countries has not yet been clearly communicated or even ratified, your timeframe for compliance could be exceedingly short”.

A confused implementation of the Directive in EuropeOver the past few months it became clear that many European businesses were under-prepared for the Energy Efficiency Directive, much to the fault of the relevant government bodies. Each Member State had to interpret and implement Article 8 within their national context.

In the UK this has taken the form of the Energy Savings Opportunity Scheme (ESOS). In the Netherlands this has taken the form of the EED-regeling. Similar schemes exist in other countries. However, the quality of this transposition – involving the communication on the requirements and how non-compliance is enforced – varies significantly between EU Member States, stretching from reputational loss to government-imposed financial penalties. In the UK, for instance, the fine for non-compliance can be up to £50,000.

Italy, Malta, Cyprus and Sweden all met the June 2014 transposition deadline. The UK followed shortly after. However, some Member States still have not fully implemented their national response to Article 8, or even clearly communicated on this requirement. On November 19th 2015, the European Commission requested France and the Netherlands to ensure the full transposition of the Directive as gaps in the national legislation transposing the Directive were identified. The two countries now have two months to comply with their obligations, after which the Commission may decide to refer these MS to the Court of Justice of the EU and ask for financial penalties.

Although the Directive is well-known in countries such as Italy, Germany, Sweden and the United Kingdom, businesses in other countries such as the Netherlands were surprised by the Directive and the sheer number of businesses that will be affected by it. At its simplest, almost every business with either 250 employees or annual revenues of €50 million must comply. This broad application is worrying, not because the goal of the Directive is unclear or unsound, but rather because its requirements are not clearly or consistently established across Member States. This is quite problematic as the deadline for affected organisations to comply with the directive was December 5th 2015, irrespective of where they operate in the EU.

Are you ready for Article 8 of the Energy Efficiency Directive? For more information on EED compliance in your country and the possibilities for conducting an energy audit, please contact us at info@eurbanlab.eu for a quote.